Question 1

_________ variables are the variables in linear regression analysis that are used to predict the measure or quantity being forecast

Accepted Answer

The answer of  _________ variables are the variables in...

Question 2

For time series methods of forecasting, explain the distinction between the simple moving average method and the weighted moving average method.

Accepted Answer

The simple moving average method involve

Question 3

Calculate three forecasts using the following data. First, for periods 4 through 11, develop the exponentially smoothed forecasts using a forecast for period 3 (F3) of 45.0 and an alpha of 0.3. Second, calculate the 3- period moving average forecast for periods 4 through 11. Third, calculate the weighted moving average for periods 4 through 11, using weights of .50, .30, and .20. Calculate the mean absolute deviation (MAD) and the cumulative sum of forecast error (CFE) for each forecasting procedure. Which forecasting procedure would you select? Why? $$\begin{array} { | l | l | } 
\hline \text { Month } & \text { Demand } \
\hline 1 & 45 \
2 & 48 \
3 & 42 \
4 & 48 \
5 & 49 \
6 & 54 \
7 & 47 \
8 & 50 \
9 & 46 \
10 & 47 \
\hline
\end{array}$$

Accepted Answer

@#IMG-DLM& \[\begin{array} { | l | l | l | l | }

Question 4

What is a tracking signal?

Accepted Answer

A tracking signal is calculated as the s

Question 5

Table 11.4.

-Use the information in Table 11.4. The forecasting equation for a three- month weighted moving average is: At = W1Dt + W2Dt - 1 + W3Dt - 2
If the sales for June were 40 units and the weights are W1= 1/2, W2 = 1/3, and W3 = 1/6, what is the forecast for July?

Accepted Answer

A)  less than or equal to 30 units 
B)  greater than 30 but less than or equal to 33 units 
C)  greater than 33 but less than or equal to 36 units 
D)  greater than 36 units 
A)  less than or equal to 30 units 
B)  greater than 30 but less than or equal to 33 units 
C)  greater than 33 but less than or equal to 36 units 
D)  greater than 36 units

Question 6

A naive forecast is a time- series method whereby the forecast for the next period equals the demand for the current period.

Accepted Answer

A) True 
 B)False

Question 7

Discuss forecast error.

Accepted Answer

It is inevitable that forecasts almost a

Question 8

There will be a lag behind the trend in actual demand when using single smooth forecasts.

Accepted Answer

A) True 
 B)False

Question 9

Table 11.7.
$$\begin{array} { | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { Units Sold } \
( 00 )
\end{array} \
\hline 1 & 150 \
2 & 145 \
3 & 160 \
4 & 180 \
5 & 220 \
\hline
\end{array}$$
-Use the information in Table 11.7. The forecast for month 4 is

Accepted Answer

A)  less than or equal to 140 units. 
B)  greater than 140 but less than or equal to 150 
C)  greater than 150 but less than or equal to 160 units. 
D)  greater than 160 units. 
A)  less than or equal to 140 units. 
B)  greater than 140 but less than or equal to 150 
C)  greater than 150 but less than or equal to 160 units. 
D)  greater than 160 units.

Question 10

Table 11.2
The manager of a pizza shop must forecast weekly demand for special pizzas
so that he can order pizza shells weekly. Recent demand has been:
$\begin{array} { | c | c | } 
\hline \text { Week } & \begin{array} { c } 
\text { No. Special } \
\text { Pizzas }
\end{array} \
\hline 1 & 50 \
2 & 65 \
3 & 53 \
4 & 56 \
5 & 55 \
6 & 60 \
\hline
\end{array}$
-Use the information from Table 11.2. If a four- week weighted moving average were used, what would be the forecast for week 7? (The weights are 0.77, 0.11, 0.11, and 0.01.)

Accepted Answer

A)  less than or equal to 58 
B)  greater than 58 but less than or equal to 59 
C)  greater than 59 but less than or equal to 60 
D)  greater than 60 
A)  less than or equal to 58 
B)  greater than 58 but less than or equal to 59 
C)  greater than 59 but less than or equal to 60 
D)  greater than 60

Question 11

An initial forecast must be obtained by another method, before beginning a series of exponentially smoothed forecasts.

Accepted Answer

A) True 
 B)False

Question 12

A quantitative approach is applied when using the Delphi forecasting method.

Accepted Answer

A) True 
 B)False

Question 13

Table 11.7
$\begin{array} { | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { Units Sold } \
( 00 )
\end{array} \
\hline 1 & 150 \
2 & 145 \
3 & 160 \
4 & 180 \
5 & 220 \
\hline
\end{array}$
-Use the information in Table 11.7. What is the MAD for months 2 through 5?

Accepted Answer

A)  less than or equal to 20 
B)  greater than 20 but less than or equal to 25 
C)  greater than 25 but less than or equal to 30 
D)  greater than 30 
A)  less than or equal to 20 
B)  greater than 20 but less than or equal to 25 
C)  greater than 25 but less than or equal to 30 
D)  greater than 30

Question 14

Some analysts prefer to use a holdout set as the final test of a forecasting procedure.

Accepted Answer

A) True 
 B)False

Question 15

Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.

Accepted Answer

A) True 
 B)False

Question 16

In developing a regression equation of the form Y = a + bX, the intent is to use values of X to predict the likely outcome for the dependent variable Y.

Accepted Answer

A) True 
 B)False

Question 17

A causal model, time cannot be used as an independent variable.

Accepted Answer

A) True 
 B)False

Question 18

Why are forecasts for product families typically more accurate than forecasts for the individual items within a product family?

Accepted Answer

More accurate forecasts are ob

Question 19

_________ is a forecasting method in which the opinions, experience, and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Accepted Answer

The answer of  _________ is a forecasting method in...

Question 20

Which one of the following statements about forecasting is FALSE?

Accepted Answer

A)  The weighted moving average method allows forecasters to emphasize recent demand over earlier demand. The forecast will be more responsive to change in the underlying average of the demand series. 
B)  The most frequently used time series forecasting method is exponential smoothing because of its simplicity and the small amount of data needed to support it. 
C)  In exponential smoothing, higher alpha values place greater weight on recent demands in computing the average. 
D)  You should use the simple moving average method to estimate the mean demand of a time series that has a pronounced trend and seasonal influences. 
A)  The weighted moving average method allows forecasters to emphasize recent demand over earlier demand. The forecast will be more responsive to change in the underlying average of the demand series. 
B)  The most frequently used time series forecasting method is exponential smoothing because of its simplicity and the small amount of data needed to support it. 
C)  In exponential smoothing, higher alpha values place greater weight on recent demands in computing the average. 
D)  You should use the simple moving average method to estimate the mean demand of a time series that has a pronounced trend and seasonal influences.

_________ variables are the variables in linear regression analysis that are used to predict the measure or quantity being forecast

For time series methods of forecasting, explain the distinction between the simple moving average method and the weighted moving average method.

What is a tracking signal?

Table 11.4. -Use the information in Table 11.4. The forecasting equation for a three- month weighted moving average is: A_t= W₁D_t+ W₂D_t- 1 + W₃D_t- 2 If the sales for June were 40 units and the weights are W₁= 1/2, W₂= 1/3, and W₃= 1/6, what is the forecast for July?

A naive forecast is a time- series method whereby the forecast for the next period equals the demand for the current period.

Discuss forecast error.

There will be a lag behind the trend in actual demand when using single smooth forecasts.

Table 11.7. Month Units Sold (00) 1 150 2 145 3 160 4 180 5 220 -Use the information in Table 11.7. The forecast for month 4 is

An initial forecast must be obtained by another method, before beginning a series of exponentially smoothed forecasts.

A quantitative approach is applied when using the Delphi forecasting method.

Table 11.7 Month Units Sold (00) 1 150 2 145 3 160 4 180 5 220 -Use the information in Table 11.7. What is the MAD for months 2 through 5?

Some analysts prefer to use a holdout set as the final test of a forecasting procedure.

Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.

In developing a regression equation of the form Y = a + bX, the intent is to use values of X to predict the likely outcome for the dependent variable Y.

A causal model, time cannot be used as an independent variable.

Why are forecasts for product families typically more accurate than forecasts for the individual items within a product family?

_________ is a forecasting method in which the opinions, experience, and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Which one of the following statements about forecasting is FALSE?

Creating Customer Value

Supply Chain Management

Supply Chain Sustainability and Humanitarian Logistics

Process Configuration

Capacity

Waiting Lines

Inventory Management

Quality and Process Improvement

Lean Systems

Location and Layout

Operations Planning and Scheduling

Resource Planning

Filters

Exam 11: Managing Demand and Forecasting

_________ variables are the variables in linear regression analysis that are used to predict the measure or quantity being forecast

For time series methods of forecasting, explain the distinction between the simple moving average method and the weighted moving average method.

What is a tracking signal?

Table 11.4. -Use the information in Table 11.4. The forecasting equation for a three- month weighted moving average is: At = W1Dt + W2Dt - 1 + W3Dt - 2 If the sales for June were 40 units and the weights are W1= 1/2, W2 = 1/3, and W3 = 1/6, what is the forecast for July?

A naive forecast is a time- series method whereby the forecast for the next period equals the demand for the current period.

Discuss forecast error.

There will be a lag behind the trend in actual demand when using single smooth forecasts.

Table 11.7. Month Units Sold (00) 1 150 2 145 3 160 4 180 5 220 -Use the information in Table 11.7. The forecast for month 4 is

An initial forecast must be obtained by another method, before beginning a series of exponentially smoothed forecasts.

A quantitative approach is applied when using the Delphi forecasting method.

Table 11.7 Month Units Sold (00) 1 150 2 145 3 160 4 180 5 220 -Use the information in Table 11.7. What is the MAD for months 2 through 5?

Some analysts prefer to use a holdout set as the final test of a forecasting procedure.

Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.

In developing a regression equation of the form Y = a + bX, the intent is to use values of X to predict the likely outcome for the dependent variable Y.

A causal model, time cannot be used as an independent variable.

Why are forecasts for product families typically more accurate than forecasts for the individual items within a product family?

_________ is a forecasting method in which the opinions, experience, and technical knowledge of one or more managers are summarized to arrive at a single forecast.

Which one of the following statements about forecasting is FALSE?

Creating Customer Value

Supply Chain Management

Supply Chain Sustainability and Humanitarian Logistics

Process Configuration

Capacity

Waiting Lines

Inventory Management

Quality and Process Improvement

Lean Systems

Location and Layout

Operations Planning and Scheduling

Resource Planning

Filters

Table 11.4. -Use the information in Table 11.4. The forecasting equation for a three- month weighted moving average is: A_t= W₁D_t+ W₂D_t- 1 + W₃D_t- 2 If the sales for June were 40 units and the weights are W₁= 1/2, W₂= 1/3, and W₃= 1/6, what is the forecast for July?